If you are selling a home or commercial property in Connecticut, you will owe a real estate conveyance tax before your deed can be recorded. This tax is split into two parts — a state portion and a municipal portion — and the exact amount depends on what you sell, where it is, and how much you receive for it. Under Connecticut General Statutes § 12-494, the grantor (seller) is legally responsible for paying this tax at closing, and no deed will be recorded by the town clerk until it is paid.[1]
Our calculator automates this process in seven clear steps. Below, we walk through each step in plain English, with two real-world examples for every one, so you know exactly where every dollar comes from.
Step 1 of 7
Calculate Your Total Consideration
Connecticut taxes the entire consideration for a property transfer — not just the cash that changes hands at the closing table. The law defines consideration broadly: it includes the purchase price, any mortgage the buyer assumes from the seller, and the fair market value of any non-cash assets (such as stock, vehicles, or other real property) exchanged as part of the deal.[2]
Total Consideration = Sale Price + Mortgage Assumed + Non-Cash Consideration
This figure becomes the base on which all taxes are calculated. Getting it right matters, because underreporting consideration is a filing error that can trigger penalties.
Example A — Cash-Only Sale
You sell your condo in Glastonbury for $420,000 cash. The buyer assumes no mortgage and gives you nothing else of value.
Total Consideration = $420,000 + $0 + $0 = $420,000
Example B — Sale with Mortgage Assumption and Property Trade
You sell a duplex in New Haven for $300,000 cash. The buyer also assumes your existing $150,000 mortgage and gives you a piece of land worth $50,000.
Total Consideration = $300,000 + $150,000 + $50,000 = $500,000
Step 2 of 7
Check Whether an Exemption Applies
Before any math happens, the calculator checks whether your transfer qualifies as tax-exempt under CGS § 12-498.[3] Connecticut recognizes a number of situations where no conveyance tax is owed at all, even on a high-value transfer. When an exemption applies, the total tax is zero and the calculator stops there — though you are still required to file Form OP-236 with the town clerk and note the applicable exemption code.
Common exemptions include transfers between spouses, transfers ordered by a court (such as in a divorce or foreclosure), mergers of corporations where the beneficial ownership does not change, gifts of a principal residence to a qualifying nonprofit organization, and transfers of deed-restricted affordable-housing units.[3] Sales where the total consideration is below $2,000 are also exempt (Step 3 handles that automatically).
Example A — Transfer Between Spouses
A husband quitclaims his half-interest in a $600,000 Hartford home to his wife as part of an uncontested divorce settlement. The exemption code is “Between Spouses” (Code 14). Total tax = $0. The attorney still files OP-236 and notes the exemption.[3]
Example B — Court-Ordered Foreclosure Transfer
A bank acquires a property through foreclosure judgment. Because the transfer was ordered by a court, the deed qualifies for the court-decree exemption (Code 17). Total tax = $0, regardless of the property’s market value.
Step 3 of 7
Check the Minimum Threshold
Connecticut imposes the conveyance tax only when the total consideration reaches at least $2,000.[1] Transfers below that amount — such as symbolic $1 deeds between family members — are automatically exempt. The calculator flags this before doing any arithmetic.
Example A — Below Threshold
A parent transfers a small strip of undeveloped land to a child for $500 to settle a boundary dispute. Total Consideration = $500, which is below $2,000. Total tax = $0. A return is still filed with the no-consideration code.
Example B — Above Threshold
Two neighbors exchange small parcels of land. The parcels are each valued at $5,000 and the agreed consideration is $5,000. Total Consideration = $5,000, which exceeds $2,000. The calculator proceeds to Steps 4 through 7.
Step 4 of 7
Calculate the State Conveyance Tax
The state portion of the tax depends on what type of property you are selling. Connecticut divides property into five categories, each with its own rate or rate structure.[1][4]
| Property Category | State Tax Rate |
|---|---|
| Residential dwelling (single-family, condo, co-op) — first $800,000 | 0.75% |
| Residential dwelling — between $800,001 and $2,500,000 | 1.25% |
| Residential dwelling — above $2,500,000 | 2.25% |
| Other residential (multi-family, apartment buildings) | 0.75% flat |
| Unimproved land (farm, forest, open space) | 0.75% flat |
| Nonresidential / commercial (improved) | 1.25% flat |
| Delinquent mortgage conveyance | 0.75% flat |
The residential dwelling tiers work marginally — like federal income tax brackets. Only the portion of the sale price that falls within each bracket is taxed at that bracket’s rate. The tiered structure was established by Public Act 19-117, effective July 1, 2020.[4]
Example A — Residential Dwelling at $1,000,000 (Two Tiers)
You sell a single-family home in Simsbury for $1,000,000.
First $800,000 × 0.75% = $6,000
Next $200,000 (from $800k to $1M) × 1.25% = $2,500
State Tax = $8,500
Example B — Commercial Building at $2,600,000 (Flat Rate)
You sell an office building in Norwalk for $2,600,000. Commercial properties use a single flat rate of 1.25% — no tiers.
$2,600,000 × 1.25% = State Tax = $32,500
Step 5 of 7
Calculate the Municipal Conveyance Tax
Every Connecticut municipality collects a base local tax of 0.25% on the total consideration, regardless of property type.[1] However, eighteen cities and towns — officially designated as “targeted investment communities” — are permitted to charge an additional surtax of up to 0.25%, bringing their total local rate to 0.50%.[5]
Cities such as Bridgeport, Hartford, New Haven, Waterbury, Norwalk, Meriden, and Windham all impose the full 0.50% total local rate. Stamford is unique: it charges 0.35% on sales up to $1,000,000 and 0.50% on sales above $1,000,000.[5] Two eligible communities — Groton and Thomaston — have opted not to impose any additional surtax and remain at the standard 0.25%.
Example A — Standard Town at 0.25%
You sell a home in Glastonbury (not a targeted community) for $420,000.
$420,000 × 0.25% = Municipal Tax = $1,050
Example B — Hartford (Targeted Community) at 0.50%
You sell a home in Hartford for $500,000. Hartford charges the full 0.50% local rate.
$500,000 × 0.50% = Municipal Tax = $2,500
How the local tax is collected: You pay the full amount to the town clerk at recording. The clerk retains the municipal share and forwards the state share to the Connecticut Department of Revenue Services within 10 days.[1]
Step 6 of 7
Add the Two Taxes Together
The total conveyance tax is simply the state portion plus the municipal portion. The calculator displays both lines separately so you can see exactly where your tax money goes — and so your attorney or title company can correctly complete Lines 15 through 20 on Form OP-236.[6]
Total Conveyance Tax = State Tax + Municipal Tax
Example A — $420,000 Home in a Standard Town
State Tax (residential dwelling, 0.75%): $3,150
Municipal Tax (0.25%): $1,050
Total Conveyance Tax = $4,200
Example B — $3,000,000 Luxury Home in a 0.50% Town
State Tax: $800k × 0.75% + $1.7M × 1.25% + $500k × 2.25% = $6,000 + $21,250 + $11,250 = $38,500
Municipal Tax (0.50%): $3M × 0.50% = $15,000
Total Conveyance Tax = $53,500
Step 7 of 7
Round to the Nearest Whole Dollar
Connecticut DRS instructs taxpayers to round all dollar amounts on Form OP-236 to the nearest whole dollar.[6] The calculator applies standard rounding rules: amounts ending in 50 cents or more round up; amounts below 50 cents round down. Cents are simply ignored on the final return.
Example A — Rounding Down
A calculation produces a state tax of $4,123.37 and a municipal tax of $1,374.12. Rounded: State = $4,123, Municipal = $1,374. Total = $5,497.
Example B — Rounding Up
A calculation produces a total of $8,750.75. Rounded to nearest dollar: $8,751. This is the amount written on OP-236 and paid to the town clerk at recording.
Who Pays, and When
By Connecticut law, the grantor (seller) is the party legally liable for the conveyance tax.[1] Payment — along with the completed Form OP-236 — is due at the moment the deed is presented to the town clerk for recording. Town clerks are legally prohibited from recording any taxable deed until OP-236 has been filed and the tax paid in full. Failing to pay results in a 10% penalty on the unpaid amount (minimum $50), plus interest at 1% per month from the due date.[7]
In practice, the seller’s attorney or title company typically prepares OP-236, calculates the tax, and arranges payment at closing. Many town clerks now accept electronic filings through Connecticut’s myCTREC system. If a property spans more than one municipality, a separate OP-236 must be filed in each town, with the consideration allocated between them (usually by relative assessed value, using CT Form AU-263).[6]
A Note on Like-Kind (1031) Exchanges
Connecticut does not offer a conveyance tax exemption for like-kind exchanges under IRC § 1031. The full consideration — including any debt assumed by the buyer — is taxable, even when no cash changes hands.[6] If you are planning a 1031 exchange, factor the conveyance tax into your closing costs.
Summary: What the Calculator Does in Seven Steps
To recap: the calculator (1) adds up your total consideration, (2) checks for exemptions, (3) checks the $2,000 minimum, (4) applies the correct state rate based on property type, (5) adds the local surtax based on your municipality, (6) sums both taxes, and (7) rounds to the nearest dollar. The result is the number that goes on your Form OP-236 and gets paid to the town clerk before your deed is recorded.
The calculator reflects Connecticut law as of the date of this publication. The tiered residential rates were established by Public Act 19-117 (effective July 1, 2020), and the housing trust fund transfer rule was updated by Public Act 23-207 (effective July 1, 2025). Rates and eligible municipalities should be verified annually after the General Assembly session, and any changes to CT DRS guidance should be reviewed when Form OP-236 instructions are updated.[4][8]
Important: This calculator is an educational tool. It is not legal or tax advice. Connecticut conveyance tax law is complex, and individual transactions may involve facts — multiple grantors, contested consideration, partial exemptions, or multi-town parcels — that require professional review. Always consult a licensed Connecticut real estate attorney or title agent before closing.
References & Sources
- Connecticut General Statutes § 12-494 — “Imposition of tax on conveyances of real property.” State of Connecticut General Assembly. cga.ct.gov. Accessed May 2026.
- Connecticut DRS Form OP-236I — “Instructions for Real Estate Conveyance Tax Return.” Connecticut Department of Revenue Services. portal.ct.gov. Defines “consideration” to include assumed debt and non-cash exchanges.
- Connecticut General Statutes § 12-498 — “Exemptions from tax on conveyances.” State of Connecticut General Assembly. cga.ct.gov.
- Public Act 19-117, § 337 — “An Act Concerning the State Budget for the Biennium Ending June 30, 2021.” Connecticut General Assembly. Established the current tiered residential rate structure (0.75% / 1.25% / 2.25%) effective July 1, 2020.
- Connecticut Office of Legislative Research (OLR) — “Real Estate Conveyance Tax: Targeted Investment Communities.” OLR Backgrounder. Lists the 18 eligible municipalities and their applicable surtax rates. cga.ct.gov/olr.
- Connecticut DRS Form OP-236 — “Real Estate Conveyance Tax Return.” Connecticut Department of Revenue Services. Updated September 2024. Includes rounding rules, multi-town allocation instructions, and OP-236 line-item breakdown. portal.ct.gov.
- Connecticut General Statutes § 12-495 and § 12-497 — “Filing of return; payment at time of recording.” Standard interest and penalty provisions apply: 10% penalty on unpaid tax (minimum $50); 1% per month interest from due date.
- Public Act 23-207, § 24 — “An Act Concerning Housing.” Connecticut General Assembly. Effective July 1, 2025, directed excess conveyance revenue to the Connecticut Housing Trust Fund and updated the mobile home park transfer form (OP-236HP).
This article is for informational purposes only and does not constitute legal or tax advice. Connecticut real estate conveyance tax law is governed by CGS §§ 12-494 through 12-504 and CT DRS guidance. Consult a licensed professional for advice specific to your transaction.